Wealth accumulation: The role of others

Michael Chaliasos

No 211, IMFS Working Paper Series from Goethe University Frankfurt, Institute for Monetary and Financial Stability (IMFS)

Abstract: Findings from four recent projects on how neighbors, peers, financial advisors, and exogenous stressors affect wealth accumulation are presented. Having neighbors with college economics or business education promotes retirement saving. Greater local wealth inequality and mobility at the start of economic life motivate college graduates to take portfolio risks and achieve greater wealth, leaving others behind. Financial advice from unbiased professionals differs from peer advice in how it relates to advisor and advisee characteristics. Background stressors, such as crises, wars, and personal problems, occupy savers' minds. In an incentivized online experiment, background cognitive load consistently dampened consumption and promoted saving.

Keywords: Wealth accumulation; peer effects; household finance; retirement saving; wealth inequality; financial advice; cognitive load (search for similar items in EconPapers)
JEL-codes: E21 G11 G5 (search for similar items in EconPapers)
Date: 2024
New Economics Papers: this item is included in nep-age and nep-exp
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Persistent link: https://EconPapers.repec.org/RePEc:zbw:imfswp:304393

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